FEDERAL COMMUNICATIONS COMMISSION
August 15,2012
..JULIUS GENACHOWSKI
CHAIRMAN
The Honorable Mark Begich
United States Senate
144 Russell Senate Office Building
Washington, D.C. 20510
,
/}. ....
Dear'Senator Begich:
Thank you for your letters regarding the Commission's Universal Service Fund (USF)
reform proceeding. I value your thoughts on a range of issues relating to the extreme conditions
affecting deployment of basic and advanced telecommunications services to remote parts of
Alaska. Your letters will be included in the record of the proceeding and considered as the
Commission continues to implement its USF reforms.
Commission staff continues to meet with any carrier or association wanting to discuss
issues, including making trips to rural areas to meet with affected carriers in their communities.
And as you know, during my trip to.Alaska last year, I had an oPRortunity to visit deployment
k-it~s and meet with man): ofthe Alaska carriers to get ~n understanding' of the unique challenges
they face.
We take these visits and meetings very seriously, and the Commission - and the staff on
delegated authority - continues to make adjustments to our reforms as necessary. For instance,
the April 25, 2012 Benchmarks Order revised the high-cost loop support (HCLS) benchmark
categories to reflect similarly-situated providers, and adjusted the phase-in period of these
changes to provide carriers with a greater opportunity to make any necessary adjustments. An
additional modification was inclusion of several new variables that were not originally part of the
HCLS equation, such as a variable that specifically accounts for the provision of service in
Alaska. Additional variables were also added that account for certain cost-related factors (e.g.
sQ.il'type, climate, service on National Park lands), as·well as.a variable and for recent
investment. All of these variables made the methodology more accurate and fair for all carriers,
including those serving Alaska.
I believe that it is important to keep moving forward with implementation of these once­
in-a-generation reforms and not roll back progress that we have made. This reform was achieved
on a unanimous basis. To ease the impact of these reforms on affected carriers, the Commission
made reasonable transition periods a touchstone. In the Benchmarks Order, for example, we
phase in reductions in suppOli over an 18-month period. To the extent that any Alaska carrier is
concerned that they will no longer be able to provide service to consumers as a result of the
Commission's reforms, the Transformation Order provides a rigorous but fair waiver process to
ensure that existing service is not disrupted. In that respect, Commission staff recently
445 12TH STREET S.W. WASHINGTON, D.C. 20554 • 202-418-1000
Page 2-The Honorable Mark Begich
authorized a 6-month waiver for Windy City Cellular. Carriers seeking a waiver that serve
Tribal Lands (which includes Alaska Native regions) must provide information concerning the
unique operating and economic conditions in their service areas. The staff will consider this
information as a factor when reviewing the requests.
The Commission and staff will continue to run a fair, open process in which the valid
concerns of stakeholders are addressed - working closely with the affected carriers to ensure that
residents of the nation's remote rural areas receive the quality broadband and
telecommunications services that all Americans need. I appreciate your interest in this very
important matter. Please let me know if I can be of any further assistance.
Sincerely,
-
Julius Genachowski
FEDERAL COMMUNICATIONS COMMISSION
August 15,2012
JULIUS GENACHOWSKI
CHAIRMAN
The Honorable Lisa Murkowski
United States Senate
709 Hart Senate Office Building
. Washington, D.C. 20510
..:.. ':~~>""":' ¥ • ; ... :"
Dear Senator Murkowski:
/'
': ';- Thank you for your letters regarding the Commission's Universal Service Fund (USF)
reform proceeding. I value your thoughts on a range of issues relating to the extreme conditions
. affecting deployment of basic and advanced telecommunications services to remote patis of
Alaska. Your letters will be included in the record of the proceeding and considered as the
Commission continues to implement its USF reforms.
Commission staff continues to meet with any carrier or association wanting to discuss
issues, including making trips to rural areas to meet with affected carriers in their communities.
And as you know, during my trip to Alaska last year, I had an opportunity to visit deployment
" ~ites and meet with many ~f;the Alaska c'arri6rs 't~' get~m understanding of the unicfue challenges
they face.
We take these visits and meetings very seriously, and the Commission - and the staff on
delegated authority - continues to make adjustments to our reforms as necessary. For instance,
the April 25, 2012 Benchmarks Order revised the high-cost loop support (HCLS) benchmark
categories to reflect similarly-situated providers, and adjusted the phase-in period of these
changes to provide carriers with a greater opportunity to make any necessary adjustments. An
additional modification was inclusion of several new variables that were not originally part of the
HCLS equation, such as a variable that specifically accounts for the provision of service in
Alaska. Additional variables were also added that account for certain cost-related factors (e.g.
soil type, climate, service on'National Park lands); as well as avariable and for recent
investment. All of these variables made the methodology more accurate and fair for all carriers,
including those serving Alaska.
I believe that it is important to keep moving forward with implementation of these once­
in-a-generation reforms and not roll back progress that we have made. This reform was achieved
on a unanimous basis. To ease the impact of these reforms on affected carriers, the Commission
made reasonable transition periods a touchstone. In the Benchmarks Order, for example, we
phase in reductions in support over an 18-month period. To the extent that any Alaska carrier is
concerned that they will no longer be able to provide service to consumers as a result of the
Commission's reforms, the Transformation Order provides a rigorous but fair waiver process to
en,sure that existing service is not disrupted. In that respect, Commission staff recently
445 12n-i STREET S.w. WASHINGTON, D.C. 20554 • 202-418-1000
Page 2-The Honorable Lisa Murkowski
authorized a 6-month waiver for Windy City Cellular. Carriers seeking a waiver that serve
Tribal Lands (which includes Alaska Native regions) must provide information concerning the
unique operating and economic conditions in their service areas. The staff will consider this
information as a factor when reviewing the requests.
The Commission and staff will continue to run a fair, open process in which the valid
concerns of stakeholders are addressed - working closely with the affected carriers. to ensure that
residents of the nation's remote rural areas receive the quality broadband and
telecommunications services that all Americans need. I appreciate your interest in this very
impOliant matter. Please let me know if I can be of any further assistance.
Sincerely,
------- .
Julius Genachowski
FEDERAL COMMUNICATIONS COMMISSION
August 15,2012
.JULIUS GENACHOWSKI
CHAIRMAN
The Honorable Don Young
U.S. House of Representatives
2314 Rayburn House Office Building
W~shington,D.C. 20515
.. '. '".
: .. ' ·· ..;t~:ril'-·, ~ I... ," i-w:. ~ '.~.. t '( ~ '~" _. .'~.: C', I, ~ : ,; '" ~ ~"! , : .',/ f', 1.." i ! ~.:;
',' . Dear ~ongressman Young:
i .
.: ), .",' ~' ..... , '.: • I -'. i
....
'. Thank you for your letters regarding the Commission's Universal Service Fund (USF)
reform proceeding. I value your thoughts on a range of issues relating to the extreme conditions
.affecting deployment of basic and advanced telecommunications services to remote parts of
Alaska. Your letters will be included in the record of the proceeding and considered as the
Commission continues to implement its USF reforms.
Commission staff continues to meet with any carrier or association wanting to discuss
issues, including making trips to rural areas to meet with affected carriers in their communities.
And, as you know, during my trip to Alaska last year, I had an opp.ortunity to visit deployment
~:ii!es and meet with rt1anY'of'tlle jL\lisl~'~' carriers' to get ar~nd~rstandlng' ofthe'u~iqbe challenges
'. they face.
We take these visits and meetings very seriously, and the Commission - and the staff on
delegated authority - continues to make adjustments to our reforms as necessary. For instance,
the April 25, 2012 Benchmarks Order revised the high-cost loop suppOli (HCLS) benchmark
categories to reflect similarly-situated providers, and adjusted the phase-in period of these
changes to provide carriers with a greater oppOliunity to make any necessary adjustments. An
additional modification was inclusion of several new variables that were not originally part of the
HCLS equation, such as a variable that specifically accounts for the provision of service in
Alaska. Additional variables were also added that account for celiain cost-related factors (e.g.
soil. type, climate, seivice on National Patk lands), as well as'-a variable 'and for recent
investment. All of these variables made the methodology more accurate and fair for all carriers,
'.. including those serving Alaska.
I believe that it is important to keep moving forward with implementation ofthese once­
in-a-generation reforms and not roll back progress that we have made. This reform was achieved
on a unanimous basis. To ease the impact of these reforms on affected carriers, the Commission
made reasonable transition periods a touchstone. In the Benchmarks Order, for example, we
phase in reductions in support over an I8-month period. To the extent that any Alaska carrier is
concerned that they will no longer be able to provide service to consumers as a result of the
Commission's reforms, the Transformation Order provides a rigorous but fair waiver process to
·el).su're that existing service is not disrupted. In that respect, Commission staff recently
445 12m STREET S. W. WASHINGTON, D. C. 20554 • 202-4 18-1000
Page 2-The Honorable Don Young
authorized a 6-month waiver for Windy City Cellular. Carriers seeking a waiver that serve
Tribal Lands (which includes Alaska Native regions) must provide information concerning the
unique operating and economic conditions in their service areas. The staff will consider this
information as a factor when reviewing the requests.
The Commission and staff will continue to run a fair, open process in which the valid
concerns of stakeholders are addressed - working closely with the affected carriers to ensure that
residents of the nation's remote rural areas receive the quality broadband and
telecommunications services that all Americans need. I appreciate your interest in this very
important matter. Please let me know if I can be of any further assistance.
Sincerely,
----------- .
Julius Genachowski